A Structural Analysis of the Health Expenditures andPortfolio Choices of Retired Agents

Richer and healthier agents tend to hold riskier portfolios and spend proportionallyless on health expenditures. Potential explanations include health and wealth eects onpreferences, expected longevity or disposable total wealth. Using HRS data, we perform astructural estimation of a dynamic model of consumption, portfolio and health expenditurechoices with recursive utility, as well as health-dependent income and mortality risk.[...]